Vehicle insurance is an irreplaceable phenomenon in the modern world since it helps people cope with car accidents’ financial consequences. The insurance industry is extended and includes multiple companies that compete to attract more customers. Under such circumstances, a single innovative idea can become a significant advantage that will provide clients with essential benefits. Flexible coverage options are a suitable example because they can provide customers with an opportunity to purchase specific insurance features at a lower price.
To begin with, one should explain that traditional insurance lasts for a continuous period of time. This option is not attractive for people who only use their vehicles during particular day hours or on certain days. That is why these individuals will appreciate if they can choose dates and times when they have coverage. Consequently, the new idea is to make it possible for clients to select flexible coverage options that, in turn, will imply lower costs.
According to Kotler and Keller (2016), this service will meet the customers’ need for insurance and their want to shape its features. This variant is also suitable for insurance companies because the probability of a car accident depends on a day of week or time of the day. For example, the data of 2018 show that the most popular car crash period is weekdays from 4 PM till 7.59 PM (Injury Facts). Thus, if a person states that they intend to use a car during periods other than the one stipulated above, they can reckon on significantly lower insurance rates.
In conclusion, it is challenging to imagine the modern world without vehicle insurance. To attract more customers, insurance companies need to offer innovative ideas, and a flexible coverage option is among them. If people use their vehicles during specific periods of the day or on particular days of the week, they will appreciate the opportunity to purchase cheaper insurance that will cover these specific periods of time.
References
Injury Facts. (n.d.). Crashes by time of day and day of week. Web.
Kotler, P., & Keller, K. L. (2016). A framework for marketing management (6th ed.). Pearson.